New Delhi: With the deadline to ensure that all credit card bill payments are routed through Bharat Bill Payment System (BBPS) platform, several third-party payment providers are yet to follow the directive from Reserve Bank of India (RBI).
In February, RBI mandated for all credit card bill payments to be routed through the BBPS platform by June 30, 2024. After this date, credit card payments will only be supported for banks on the BBPS platform.
Further, India’s top 3 private banks including HDFC Bank, Axis Bank, and ICICI Bank, which control a sizable portion of credit card transactions in the country, are yet to be boarded on BBPS rails. However, these non-compliant banks, and third-party payment apps including Cred and PhonePe are using alternative methods such as IMPS, NEFT, and UPI to continue offering users the option to make credit card bill payments, circumventing the regulator’s directive.
“Third-party apps are using alternative methods like IMPS, NEFT, and UPI, However, the fintech companies are using BBPS for those lenders who have already activated it,” a fintech executive aware of the discussions.
Paytm, which also supports credit card payment transactions, is currently providing the service only for banks on the BBPS platform, as per the notification to users on its app. These include the State Bank of India, Kotak Mahindra Bank, IndusInd Bank, IDBI Bank, AU Small Finance Bank, Canara Bank, Bank of Baroda, and Federal Bank.
The Noida-headquartered payments company will resume credit card bill payment services for other banks once they are on board the BBPS platform. Previously, the payments industry was planning to seek a deadline extension by 90 days to the RBI order.
While payments platforms such as Cred and PhonePe are bypassing RBI’s rule to route all credit card bill payments via Bharat Bill Payment System (BBPS), Paytm is in compliance with the centra; bank’s directives. Biz News Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
